Security Matters works to future-proof fashion industry with new circular economy tech service
Link copied to
Special Report: Security Matters (ASX:SMX) has officially opened a Sustainability Competence Centre for fashion brands, providing them with a transparent shared platform for recycling their goods back into high-quality materials and merchandise.
The SMX’s breakthrough digital twin (physical marking + blockchain) can track, trace, authenticate and verify products – both physically and digitally – at every stage of the supply chain, from raw materials to distribution and retail.
Now SMX is implementing this technology for the fashion industry, with an initial focus on sunglasses, sports shoes and T-shirts.
Suppliers will be able to generate plastic credits and carbon credits that in turn would increase in value as the raw materials go through additional lifecycle loop counts. These credits could then be used to incentivise fashion brands and manufacturers to design for recyclability and the consumption of less virgin materials – thus enhancing the circular economy.
An estimated 92 million tons of textile waste is created each year by the fashion industry, a figure that’s expected to rise 60 per cent by 2030, so there’s been pressure by environmentalists and regulators for the industry to clean up its act.
SMX says its Sustainability Competence Centre will be ready to lend a hand in early January 2021 and has applications across a wide range of material including wool, plastics, vegan leather, polyesters and cottons.
“It is uneconomical and inefficient to use 100 per cent raw virgin materials in every new product being manufactured,” says Security Matters founder and chief executive Haggai Alon.
“By using SMX’s marking technology and digital blockchain platform, fashion brands can efficiently sort, reclaim and reuse the raw materials in the unwanted product.
“Hence reducing the amount of virgin materials required; amount of waste sent to landfills; level of carbon emissions; and meeting the sustainability and ESG expectations of their consumers and stakeholders.
“The SMX’s Sustainable Competence Centre will enable fashion brands and their value chain partners to future proof their business models,” Alon says.
“Those ready to adapt and rethink their current business models will be the ones who will survive the best and thrive in the new circular closed loop economy.”
There’s a lot going on for Security Matters, which last month received a $760,000 ESG (environmental, social and corporate governance) investment from Psagot, Israel’s largest asset manager and institutional investor.
The capital raising is in addition to a $2.1 million private placement announced in November, a $5 million placement in March and a $1.5 million follow-on round, also in March.
In total, Security Matters has raised $9.26 million for the year, significantly strengthening its balance sheet and giving the company a financial runway to mid-2022.
The funds will be used to accelerate speed of adoption and commercialising of SMX’s technology across its target market segments – everything from ethical mining to fashion and cosmetics to food security.
This article was developed in collaboration with Security Matters, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.